Biden Must Act As Beijing Targets U.S Savings

President Biden should make it quite apparent that Chinese businesses seeking to list on American stock exchanges must choose between adhering to American norms of transparency and disclosure. In addition, many investors are unaware that the Chinese Communist Party (CCP) refuses to allow these enterprises to reveal their records to American regulators. The savings of American workers and their families are jeopardized as a result of this rejection. For instance, Didi and Luckin Coffee are simply the tip of the iceberg regarding financial risk, and they represent merely a small portion of the overall problem.

Furthermore, the Public Company Accounting Oversight Board is one of America’s safeguards. Its authorities certify the accuracy of the books of any domestic or international corporation that trades on a U.S. exchange. Firms owned by the CCP, on the other hand, have a history of lying to the PCAOB and dodging its scrutiny altogether. As a result, U.S. investors are left in the dark. In addition, on behalf of a worldwide market capitalization of about $2.3 trillion, China has made it hard for the PCAOB to get timely access to critical documents and evidence.

Subsequently, Chinese businesses may commit fraud without fear of penalties. For instance, in less than a year, Luckin Coffee produced $310 million in revenue. When such fraud is revealed, the stock prices of these firms plummet, impacting the money of ordinary Americans. Moreover, the CCP is unlikely to accept such responsibility. However, President Xi Jinping’s government is growing increasingly aggressive. The CCP needs President Biden to safeguard American investment. He may do so by implementing and expanding on the Holding Foreign Companies Accountable Act, which Democrats and Republicans collaborated on last year. If a company refuses PCAOB audits for three years, it is barred from trading on American stock exchanges.

Accordingly, when China’s foreign ministry spokesman denounced the legislation as an unwarranted political attack on Chinese businesses, she offered Americans a hint at how much it may derail the Communist Party’s economic plan. The law, on the other hand, is entirely legitimate. In other words, America doesn’t expect Chinese firms to do anything that all international and local companies don’t require Americans to do. As a consequence, President Biden has made it tougher to combat the CCP’s devilry. He replaced the PCAOB’s head once the Holding Foreign Companies Accountable Act took effect.

Moreover, plans to ask Chinese firms to disclose their hand was also stalled. Therefore, it would be erroneous to believe that President Xi hasn’t taken any action. Moreover, by supporting the Accelerating Holding Foreign Companies Accountable Act, Biden may re-empower Americans and safeguard their money. The proposal would limit businesses to two straight years of allowing their records to be audited. Conversely, President Joe Biden has warned that China would seize control if the United States does not improve its infrastructure.